This Just In: Analysts Are Boosting Their Schoeller-Bleckmann Oilfield Equipment Aktiengesellschaft (VIE:SBO) Outlook for This Year

Schoeller-Bleckmann Oilfield Equipment Aktiengesellschaft (VIE:SBO) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance. The market may be pricing in some blue sky too, with the share price gaining 13% to €64.60 in the last 7 days. Could this upgrade be enough to drive the stock even higher?

After this upgrade, Schoeller-Bleckmann Oilfield Equipment's four analysts are now forecasting revenues of €408m in 2022. This would be a substantial 22% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to soar 41% to €2.80. Before this latest update, the analysts had been forecasting revenues of €369m and earnings per share (EPS) of €2.04 in 2022. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for Schoeller-Bleckmann Oilfield Equipment

With these upgrades, we're not surprised to see that the analysts have lifted their price target 9.1% to €57.26 per share. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Schoeller-Bleckmann Oilfield Equipment, with the most bullish analyst valuing it at €85.00 and the most bearish at €30.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One thing stands out from these estimates, which is that Schoeller-Bleckmann Oilfield Equipment is forecast to grow faster in the future than it has in the past, with revenues expected to display 31% annualised growth until the end of 2022. If achieved, this would be a much better result than the 0.6% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 4.6% annually. Not only are Schoeller-Bleckmann Oilfield Equipment's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Schoeller-Bleckmann Oilfield Equipment.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Schoeller-Bleckmann Oilfield Equipment analysts - going out to 2024, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.